APPORTIONMENT OF ASSETS AND LIABILITIESState · Maharashtra

Section 66 of The Bombay Reorganisation Act, 1960

Where, by virtue of any of the provisions of this Part, any of the States of Maharashtra and Gujarat becomes entitled to any property or obtains any benefits or becomes subject to any liability, and the Central Government, on a reference made within a period of three years from the appointed day by either of the States, is of opinion that it is just and equitable that that property or those benefits should be transferred to, or shared with, the other State or that a contribution towards that liability should be made by the other State, the said property or benefits shall be allocated in such manner between the two States, or the other State shall make to the State subject to the liability such contribution in respect thereof, as the Central Government may, after consultation with the two State Governments, by order determine.

Summary

The Central Government can step in to change how assets or debts are divided if it feels the current split is unfair.
The Central Government must consult both state governments before making a final order.
It is meant to ensure a just and equitable, or fair, distribution of property and benefits.

Practical examples

1In 1962, Gujarat feels that the way a specific revenue fund was divided under Section 51 was very unfair. They ask the Central Government to look at it. After talking to both states, the Central Government orders Maharashtra to pay Gujarat a larger share because it is more equitable.

2Maharashtra realizes in 1961 that they are stuck with a huge liability for a bridge that mainly benefits Gujarat. They make a reference to the Central Government under Section 66. The Central Government then orders Gujarat to contribute to the debt payments.

FAQ

1. Can the Central Government force a state to share property under Section 66 of the 1960 Act?

Yes, if the Central Government believes it is just and equitable, it can order property or benefits to be shared or transferred under Section 66 of the 1960 Act.

2. Does the Central Government have to talk to the states before using Section 66 of the Bombay Reorganisation Act?

Yes, Section 66 of the Bombay Reorganisation Act requires the Central Government to consult with the two State Governments before making a determination.

Test yourself

Q1.Under Section 66 of the Bombay Reorganisation Act, 1960, what is the deadline for a state to request an adjustment?

Q2.What standard does the Central Government use to decide a case under Section 66 of the 1960 Act?

Q3.Under Section 66 of the Bombay Reorganisation Act, who must the Central Government consult?

Q4.If a state finds an unnamed asset after the 1961 deadline in Section 64, can they still use Section 66 of the 1960 Act?

65PreviousSection 65 Apportionment of assets or liabilities by agreement.67NextSection 67 Certain expenditure to be charged on Consolidated Fund.

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